How much should you have by your 20s, 30s
or your 40s?
What’s the average net worth by age and
what are some ways to increase your net worth
In this video, I’ll explain net worth and
give you an easy formula to follow.
Then we’ll look at net worth by age and
reveal the fortunes of 10 celebrities at each
We’re talking net worth explained today
on Let’s Talk Money!
Make your money work for you.
Creating the financial future you deserve.
Let’s Talk Money.
Joseph Hogue with the Let’s Talk Money channel
here on YouTube.
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in the community, thank you for taking a little
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We’ll get to those net worth goals for each
decade of your life and how to build yours
but first, what is net worth and why is it
Net worth is your financial wealth taking
into account everything you own and subtracting
everything you owe.
It’s your assets which includes investments,
savings, the value of your business, real
estate and anything else you own that has
From this you subtract your liabilities, that’s
all the debts you owe including loans, mortgages
and credit cards.
Your net worth is important because it helps
you understand your financial health.
A lot of people get caught up in their income
and their ability to spend but there’s a
huge difference here between net worth and
All you have to do is look at all the phony-rich,
the people making lots of money but that owe
millions more to know that income isn’t
You could have a $200,000 a year income but
spend it all on leasing fancy cars, expensive
vacations and designer clothes.
At the end of the year, you really own nothing
and need to keep making that money to keep
up the lifestyle.
On the other hand, someone making a respectable
$50,000 a year could be investing their money,
using part of it to build an online business
and just generally living within their means.
They’re growing that assets side of the
equation with those investments and businesses.
It won’t be long before the assets start
churning out an income, supporting a lifestyle
that doesn’t depend on working all the time.
Calculating your net worth is also going to
give you something to reach for, a measure
for your financial goals.
I’ll show you the average net worth by age
and some ways to build wealth at each decade
of your life.
First though, I want to get your feedback
How much net worth do you think a person needs
to be considered rich?
Is it a million dollars, maybe $10 million?
Could you be rich on less, say a couple hundred
Scroll down and tell us in the comments, at
what point would you consider yourself rich
So we know calculating your net worth is just
a matter of adding up all your assets and
then subtracting all your debts.
That means figuring out how much your home
is worth, how much you have in cash and savings
If you have a side hustle business, that has
value beyond just the income it produces so
you also include that.
Then you add up all your debts, all the loans,
credit card balances and your mortgage.
The sum of all your assets minus these debts
is your net worth.
Knowing this, and we’ll see it when we look
at net worth by age next, there are really
three ways to increase your net worth.
First, you can just work on paying off your
Not having much in assets isn’t a problem
unless you also owe tens of thousands on credit
Paying off those credit cards can mean a positive
net worth even if your assets don’t increase.
You can also invest your money in stocks,
bonds and real estate.
The money you invest in these is going to
grow each year, increasing your net worth
even if you don’t do anything else.
It might not be a huge increase or the fast-track
to riches but it’ll get you there.
The third way to build net worth, and understand
you should be doing all three of these together,
but this third way is my favorite.
Is to start some kind of a side business.
A lot of the famous celebrity net worths we’ll
look at were made on acting or singing fame
but the real fortunes were all made on a business
My online business has grown income by an
average of 84% a year to a six-figure annual
That’s many times above the annual return
you’ll get on other investments and can
create real legacy wealth fast.
We’ll look at that net worth by age next
but if you’re likin’ the video and the
information here, do me a favor and tap that
thumbs up button.
Now let’s look at some averages for net
worth by age and some of the celebrities that
put us all to shame.
Here’s the table made with data from the
Federal Reserve for U.S. households and we’ll
go decade by decade in a bit.
What you see here are the blue lines which
are median net worth and the yellow is average
Now I have to go all math nerd on you for
Median is the number where half of everyone
is above and half are below.
Average, the number we’re used to seeing,
is all the data and then divided by the number
Just a few billionaires in a set of households
can make the average look way higher than
the median and really blow the whole thing
out of proportion.
So here, I want you to look at the blue lines,
the median net worth where half the households
have more and half have less.
That median number is just a truer ‘middle’
of the road net worth.
So if you’re in your 20s and don’t have
two nickels to rub together, don’t feel
bad because you’re not alone.
The median net worth here for those 25 to
29 years old is just under $9,000 which actually
doesn’t sound too bad considering the level
of student loan debt most people have.
In fact, most people’s net worth in their
20s is negative with more debt owed than assets.
Focus on that long-term plan to grow your
Look into some of the side hustles and business
ideas we talk about on the channel.
Contribute as much as you can to your company’s
401K account and a Roth account if you have
any money left to save.
At this point you probably won’t have much
money unless of course your name is Kylie
Jenner, the 21-year old cosmetics entrepreneur
of the Jenner/Kardashian family.
Kylie’s net worth is estimated around $300
million…yeah, not a billionaire but not
doing too bad either.
That billionaire estimate that shocked everyone
last year was from a Forbes article that mis-valued
her cosmetics company at $800 million when
in fact it’s probably worth less than half
that on normal valuation measures.
That said, it’s still a nice chunk of change
for a Gen Z kid…I’ll leave it to you whether
she’s self-made or not.
But maybe you don’t know a thing about cosmetics,
how’s your singing voice?
Justin Bieber, age 25, started right here
on YouTube uploading cover songs at age 13.
After getting discovered and signing a record
deal, he hit his first million by age 16 and
is now worth over $285 million.
By the time you reach 30 years old, the common
goal is to have half your salary as your net
We see here the median is around $29,000 for
those in their early 30s rising to almost
$40,700 by the late 30s.
So half your annual salary as a goal.
That means if you make forty-grand a year,
you should aim to have about $20,000 in net
worth by this point.
That’s within reason for investing.
Let’s say you invest $100 a month starting
at age 23 and earn 8% on your investments.
That grows to over $25,000 by age 35 and can
work with just about any budget.
If you’re getting started late and still
have that negative net worth in your 30s,
it’s still not too late.
With two-in-three families saying they couldn’t
cover a $1,000 emergency expense, you’re
definitely not alone.
But you need to get started.
If you have trouble saving money, start by
saving up enough for a down payment on a house.
A lot of people will tell you a home isn’t
an investment but in my opinion, it’s one
of the best wealth builders for people that
have trouble saving and investing otherwise.
That home is a forced savings plan with those
monthly payments helping you to build up equity
in the value.
Even if you can’t manage to save anything
else, that’s going to be a good start way
to build your net worth.
Of course, you could be like young Mark Zuckerberg
and start a little internet company called
The Facebook from your college dorm.
In which case, at 34 years old, you’d now
be worth $50 billion with over $175 million
in real estate and land.
Zuckerberg actually created his first company
Intelligent Media Group to build an AI music
player before Facebook.
AOL and Microsoft both wanted to buy the company
and recruit young Zuck but he turned them
down to go to college…where he would later
drop out and become a zillionaire!
There’s also diva Beyonce Knowles, age 37
and estimated net worth over $500 million.
Beyonce started with the group Destiny’s
Child in 1990, before going solo spreading
her wings as an actress and fashion designer
and becoming the Queen Bee.
The goal by your 40s is to have a net worth
of twice your annual salary.
We see here the median net worth is from about
$40,000 to $87,000 for those in their early-
and late 40s but that’s well below this
This is where we really see people start falling
behind their net worth and retirement savings
For example, we see from research by Fidelity
that people in their 40s have an average of
$91,000 in their 401K accounts but many probably
still have student loans or other debts that
are bringing that savings down to the net
worth median we see in the other graphic.
If you’ve been saving and investing regularly
then you might be doing ok but most people
are pretty far behind at this point.
Making up for that lost time is going to mean
starting your own side hustle or online business.
I didn’t start my blogs until I was 38 and
just got into YouTube after turning 41.
I had a decent nest egg before but nothing
like what I’ve been able to build with the
I’m going to leave a link in the video description
below to our five-video build a blog series.
In it, I show you step by step into starting
a blog from picking a topic to making blogging
I’ll show you how to build your blog and
reveal the five income sources I use to make
over ten grand a month.
Now if you’re Leonardo DiCaprio, you don’t
need an online business.
Now age 44, DiCaprio started in TV commercials
as a kid before moving on to the big screen.
He’s built a $250 million net worth but
only just won his first Oscar in 2016…poor
If you’re a little bigger than Leo, you
might consider becoming a pro football player
and wrestler like Dwayne ‘The Rock’ Johnson
to amass a $280 million net worth.
The Rock got his first TV break as an alien
on Star Trek Voyager and the rest is history.
The standard net worth goal by the time you
reach 50 is four-times your annual salary
and this is where people really start freaking
With an average income around $36,000 that
would mean a net worth goal of about $144,000
which is above even the medians we see here
from a hundred and five thousand to $137,000
for people in their late 50s.
Top it off with the fact that a lot of people
in their late 40s, early 50s have kids going
to college or are still paying off those college
Don’t neglect your own retirement savings
to pay for your kids college costs.
The biggest risk I see is people get so far
behind this average or their goals and they
just give up.
It’s easy to get frustrated or disappointed
when you see the goal is to have $140,000
and you haven’t even started.
Don’t give up!
Understand that these are only general ideas
for net worth.
Just because you don’t have a hundred and
forty grand doesn’t mean you still can’t
build a nice nest egg before you need to retire.
I’m linking to another playlist in the video
description below, this one to our get rich
Now the name is a little dramatic.
These aren’t get rich quick schemes but
legit ideas to make money either online or
even through traditional side hustles.
There are five videos in the playlist and
dozens of ideas on making money so check that
Or you could get a multi-million deal from
Marvel to lead their super-hero extravaganza.
Robert Downey Jr, now 54, has been acting
since the age of five when he was in his father’s
production of Pound.
With more than 91 acting credits, he’s worth
an estimated $300 million which is still less
than three percent the $12 billion net worth
amassed by his super-hero persona Tony Stark.
Topping our list of net worth all-stars is
Jeff Bezos with an estimated $150 billion…wait,
$114 billion after his much publicized divorce.
At 55 years old, Bezos started Amazon from
his garage in 1994 and was a billionaire by
As you reach your 60s, the common net worth
goal is to have six-times your annual salary
or around the median here between $168,000
to $224,000 for those in their late 60s.
At this point, your net worth goals should
really be based on your needs in retirement.
The idea is to replace about 85% of your pre-retirement
spending through savings and social security.
So if you’re spending about $55,000 a year
before retirement, that would mean aiming
for around $46,000 from investments and social
Don’t forget though, you can still earn
money even in retirement and not lose your
social security benefits.
If you’re at full retirement age, you can
make up to $46,920 a year without losing any
of your social security benefits.
That can easily be a part-time online business
like blogging or affiliate marketing to help
pay the bills.
One person I don’t think is worried about
paying the bills is Oprah Winfrey worth an
estimated $3.5 billion.
Now 65, Oprah rose up from a local radio reporter
to TV stardom and then to a true media mogul.
An inspirational story, she’s become an
advocate on humanitarian issues donating over
$400 million to charity groups.
She became a millionaire at 35 and owns real
estate as well as a position in Weight Watchers.
But that’s only nine celebrities and their
net worth…who am I missing?
Oh yeah, a kid that didn’t even show up
on the age chart because he’s only seven
Ryan Kaji of Ryan’s Toy Review here on YouTube.
Forbes estimated last year the family-produced
channel made over $22 million.
Besides sponsorships from toy companies and
advertising on YouTube, Ryan is now selling
his “Ryan’s World” line of toys through
With its 19 million subscribers and creating
videos since 2015, I couldn’t find a net
worth estimate but it has to be over $50 million.
If you’re serious about building your net
worth then click through to that build-a-blog
It’s completely free and will get you started
with everything you need to make money including
an easy-to-follow checklist of everything
in the five videos.
That’s linked in the description below the
We’re here Mondays, Wednesdays and Fridays
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How much should you have by your 20s, 30s